Australian released from Bali jail despite 'drunken attack' on hotel staff

A Sydney man has walked free from a Bali police station after four days in custody for an alleged drunken assault on hotel staff when he was cut off at the bar.

Police have decided not to pursue charges against Scott James Harrison because he's compensated three security guards for their medical expenses and they withdrew their complaints.

The 40-year-old was facing up to two years and eight months behind bars.

"I am very happy and I am sorry," Mr Harrison said following his release, still wearing the same clothes he was arrested in.

The construction worker was accused of drinking for several hours before going on a "rampage" at TS Suites in Seminyak around 1.30am Wednesday.

He allegedly tried to punch the hotel's bar staff when they refused him more drinks, before lashing out at three bouncers who tried to calm him down.

The security guards suffered facial injuries and one claims Mr Harrison, who was in Bali on a holiday with his wife, tried to choke him.

Lawyer Daniar Sasongko said he interrupted other hotel guests by knocking on their doors but didn't remember any of the outburst because he was so drunk.

On Friday all three of the alleged victims signed "peace agreements" and said they'd forgiven their accused attacker.